JSW Steel’s share rose 2.4% to a high of Rs 1,266.60 on the NSE after it reported its first-quarter earnings. The performance came ahead of brokerages’ estimates. Emkay Global Financial Services and Motilal Oswal Financial Services maintained their rating and 12-month price target on the steel stock.
Emkay Global on JSW Steel
The domestic brokerage house Emkay Global retained its ‘Buy’ rating on JSW Steel, with a price target of Rs 1,237, implying an upside of 13.2% from the current market price.
JSW Steel reported a robust first quarter, with a consolidated EBITDA of Rs 9,380 crore, which exceeded Emkay Global’s estimates by 9% and 13%, respectively. This beat was primarily driven by strong realisations and a richer flat steel mix, which helped offset an 11.6% decline in sales volumes and higher coking coal costs.
Emkay Global sees sales volume to grow at a CAGR of 8% over FY26-29. This growth is expected to be fueled by incremental contributions from major projects, including the BF-3 expansion at Vijayanagar (which is already operating at 80% utilisation), the 5 MT Dolvi expansion, and the BMM acquisition.
While Q2FY27 may face seasonal pricing pressure and elevated coking coal costs, Emkay Global believes rebar prices are nearing a bottom at nearly Rs 48,000 per tonne. The brokerage anticipates a recovery in both demand and pricing in the second half of FY27, supported by easing raw material costs starting in the third quarter.
Motilal Oswal on JSW Steel
Motilal Oswal retained its Buy rating on the steel stock, with a price target of Rs 1,470, implying an upside of more than 19% from the current market price.
The company reported earnings in line with the brokerage’s expectations, supported by net sales realisation improvement.
“We remain constructive on the company’s medium-term outlook, underpinned by the commissioning and ramp-up of new capacities, robust domestic steel demand, and rising share of VAP,” said Motilal Oswal.
In addition, enhancing captive iron ore availability and improving coal security is expected to strengthen cost competitiveness and support margin expansion.
Motilal Oswal maintained its FY27-28 earnings estimate, factoring a sales volume of over 30 MT
by FY28, driven by the ramp-up of new capacity. Despite input cost volatility, the brokerage house believes EBITDA per tonne will rebound to Rs 14,000 a tonne by FY28 on account of domestic steel price recovery.
Also, with the transfer of BPSL to JFE JV via a slump sale, the company’s consolidated debt has declined significantly to Rs 46,200 crore as of June 2026. This translates to the Net debt to EBITDA ratio standing at 1.46x in Q1 FY27 compared to 1.81x in Q4 FY26. The sharp deleveraging has strengthened JSW Steel’s balance sheet, unlocking the path for future capex.
JSW Steel share price performance
The share price of JSW Steel has risen 1.2% over the past five trading sessions. The stock has, however, fallen 1.7% in the past one month. The stock has increased 8.7% in the last six months. JSW Steel’s share price has raised investors’ wealth by 22% over the past one year.
